Coal India Limited (CIL) has signed a joint venture agreement with GAIL (India) Limited to establish a coal-to-synthetic natural gas (syngas) plant via surface coal gasification (SCG). Announcing the partnership on social media platform X (formerly Twitter), CIL stated, “We have signed a Joint Venture agreement (JV) with GAIL for setting up a Coal to Synthetic Natural Gas plant through the surface coal gasification (SCG) technology route.” This collaboration marks a significant advancement towards the National Coal Gasification Mission, aimed at leveraging coal’s chemical properties.
This new plant will be CIL’s second coal gasification project. In February 2024, CIL partnered with Bharat Heavy Electricals Limited (BHEL) to establish India’s first commercial-scale ammonium nitrate plant using SCG technology. The joint venture company, Bharat Coal Gasification and Chemicals Limited (BCGCL), will spearhead the project in Odisha.
The upcoming syngas plant will be located in the Raniganj area of CIL’s subsidiary, Eastern Coalfields Limited, in West Bengal. The facility is designed to produce 80,000 Nm3/hr of Synthetic Natural Gas (SNG), with an annual output of 633.6 million Nm3, requiring 1.9 million tonnes of coal supplied by CIL. SNG, primarily composed of methane (CH4), serves as a feedstock for various chemicals and fertilizers.
CIL’s Director of Business Development, Debasish Nanda, and GAIL’s Director of Business Development, RK Singhal, signed the agreement, witnessed by Petroleum Secretary Pankaj Jain, Additional Coal Secretaries M Nagaraju and Rupinder Brar, and GAIL CMD SK Gupta. This joint venture aligns with India’s broader energy strategy to increase cleaner energy sources, reduce natural gas imports, and advance the Atmanirbhar mission, promoting self-reliance.
